As more countries ease COVID-19 restrictions, more consumers are returning to stores. Buy Now, Pay Later (BNPL) platform Atome confirms that offline sales account for the majority of transactions for merchant partners such as Sephora, MAC Cosmetics, Innisfree and Augustinus Bader.
Atome’s vice president of marketing, Vangie Hu, said about 60% to 65% of sales are generated by offline transactions. Cosmetic Design Asia.na
“When you see crowds returning at certain malls, there is no doubt that traffic has rebounded dramatically. Offline and mall shopping remains an important social activity, especially in Southeast Asia.”na
The company says 70% of its customers are between the ages of 20 and 40. However, while this group of consumers is returning to stores, basket sizes tend to be smaller.
Additionally, 60% of these consumers prefer to use a debit card even though they have or are eligible for a credit card. Hu said the reason is that young professionals are more cautious about their spending.
Hu points out that even though the baskets are smaller, conscious shoppers want higher quality beauty products. As such, we are seeing a high demand for his BNPL services in this sector.
“Flexible BNPL services offer consumers options and convenience when it comes to managing their budgets and purchasing.”na
The time away has created pent-up demand from consumers, thus soothing signs of a physical store recovery. However, this is just the beginning.
“Retail traffic has not yet fully returned to pre-pandemic levels. is the macro environment and inflation, and consumers are a little more conservative.You can be in the mall, but you’re not necessarily buying that much.” Hu said.
The company is optimistic about the recovery, but Fu added that retailers will have to work to catch up. “The ever-accelerating speed of change.” na
she said: “Once lockdowns were lifted and malls were allowed to open again, offline retail began to recover gradually, and retailers realized the need to respond and adapt to new consumer behavior.na
“Consumers are beginning to consider products they feel comfortable buying online. Items they want to try, feel and go to the store to buy. Consider which products you would like to test or try at the store, possibly even while you are in the store.”na
